Slack announce direct Listing, Will not go for traditional IPO

Slack Technologies, Inc. announced that it has confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”) relating to the proposed public listing of its Class A common stock. The public listing is expected to take place after the SEC completes its review process, subject to market and other conditions.

As per the information, Slack opt for a direct listing as opposed to a traditional IPO.

This kind of listing gives other small investors to sell their shares to large investors – a strategy which follows for early trading.

Slack is hoping for a valuation of more than $10 billion in the listing. However, the company did not specify the exact number of shares for the listing.

Founded in 2013, Slack allows teams and businesses to communicate through groups. As per the slack blog post, they have 50% around 85000 paying customers.

Slack raises total around $1.2 billion funding and it has investors like SoftBank, T. Rowe Price, Sands Capital Ventures and General Atlantic, etc.